2 Major Tax Law Changes for Individuals in 2019
Most provisions of the Tax Cuts and Jobs Act (TCJA) went into effect in 2018 and apply either through 2025 or are permanent, but there are two major changes under the act for individuals that begin in 2019. Here’s a closer look. 1. Medical expense deduction threshold With rising health care costs, claiming whatever tax breaks related to health care that you can is more important than ever. But there’s a threshold for deducting medical expenses that was already difficult for many taxpayers to meet, and it may be even harder to meet this year. The TCJA temporarily reduced the threshold from...
Read MoreA Review of Significant TCJA Provisions Impacting Individual Taxpayers
There isn’t too much you can do to reduce your 2018 income tax liability now that 2019 has begun. But it’s smart to begin preparing for filing your 2018 return. Because the Tax Cuts and Jobs Act (TCJA), which was signed into law at the end of 2017, will likely have a major impact on your 2018 taxes, it’s a good time to review the most significant provisions impacting individual taxpayers. Rates and exemptions Generally, taxpayers will be subject to lower tax rates for 2018. But a couple of rates stay the same, and changes to some of the brackets for certain types of filers (individuals and...
Read MoreA Refresher on Major Tax Law Changes for Small-Business Owners
The 2018 income tax filing season will soon be upon us. After the end of the year, it’s generally too late to take action to reduce 2018 taxes. Therefore, business owners may want to shift their focus to assessing whether they’ll likely owe taxes or get a refund when they file their 2018 returns this spring, so they can plan accordingly. With the biggest tax law changes in decades under the Tax Cuts and Jobs Act (TCJA), most businesses and their owners will be significantly impacted. So, refreshing yourself on the major changes is a good idea. Taxation of pass-through entities These changes...
Read MoreAct Soon to Save 2018 Taxes on Your Investments
Do you have investments outside of tax-advantaged retirement plans? If you do, you might still have time to shrink your 2018 tax bill by selling some investments. You just need to carefully select which investments you decide to sell. Try balancing gains and losses If you’ve sold investments at a gain this year, consider selling some losing investments to absorb those gains. This is commonly referred to as “harvesting” your losses. If, however, you’ve sold investments at a loss this year, consider selling other investments in your portfolio that have appreciated, to the extent the gains will...
Read More6 Last-Minute Tax Moves for Your Business
Tax planning is an activity that happens year-round, but there are still some year-end strategies you can use to lower your 2018 tax bill. Here are six last-minute tax moves business owners should consider: Postpone invoices. If your business uses the cash method of accounting, and it would benefit from deferring income to next year, wait until early 2019 to send invoices. Accrual-basis businesses can defer recognition of certain advance payments for products to be delivered or services to be provided next year. Prepay expenses. A cash-basis business may be able to reduce its 2018 taxes by...
Read MoreYear-End Tax and Financial To-Do List for Individuals
With 2019 on the horizon, here’s a quick list of tax and financial to-dos you should address before the end of 2018: Check your FSA balance. If you have a Flexible Spending Account (FSA) for health care expenses, you need to incur qualifying expenses by December 31 to use up these funds or you’ll potentially lose them. (Some plans allow you to carry over up to $500 to the following year or give you a 2½-month grace period to incur qualifying expenses.) Use expiring FSA funds to pay for eyeglasses, dental work or eligible drugs or health products. Max out tax-advantaged savings. Reduce your...
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